Nigeria: Sterling Bank Migrates to Africa’s First Indigenous Core Banking System

Sterling Bank Limited, one of Nigeria’s leading commercial banks, has achieved a significant milestone by transitioning to SeaBaaS, Africa’s first-ever indigenous core banking system. Developed by the Nigerian technology firm Peerless, the system was officially rolled out to customers in August 2024, marking a new era for digital banking in the region.

SeaBaaS, which stands for “Seamless Banking as a Service,” leverages advanced data analytics and artificial intelligence to streamline financial operations, offering enhanced customer experience and operational efficiency. This move showcases Africa’s growing technological capabilities and highlights Nigeria’s leadership in the continent’s digital banking transformation.

Abubakar Suleiman, CEO of Sterling Bank, emphasized the significance of SeaBaaS as the first core banking platform wholly developed and owned by an African tech company. He described the launch as a major step toward Africa’s economic self-sufficiency, adding that the intellectual property behind SeaBaaS would be available for other African partners in the coming months.

“For regulators, SeaBaaS offers greater transparency, robust reporting, and compliance with evolving global standards,” Suleiman said. He also highlighted how this system reinforces Nigeria’s reputation as one of the most technologically advanced banking industries in the world.

He added, “Partnering with Peerless to create SeaBaaS is more than a milestone—it symbolizes our ambition to remain a world-class organization. We are demonstrating that African institutions can achieve greatness, and this innovation will make the world recognize what we can accomplish.”

A Game-Changer for Africa’s Banking Industry

SeaBaaS represents a paradigm shift for the African banking sector. According to Suleiman, it is the continent’s first core banking application fully conceived, built, and owned by a Nigerian company. He underscored that every aspect of SeaBaaS, from the code to database configurations and interfaces, was developed by local talent.

For customers, the system promises faster transactions, improved security, and innovative financial products tailored to their needs. Regulators, on the other hand, will benefit from enhanced oversight, robust reporting capabilities, and better compliance with international standards.

Despite challenges during the migration, Suleiman assured customers that all issues have been resolved, with the bank gradually restoring its full range of digital services.

“This transition tested our systems and patience, but it reinforced our commitment to innovation and excellence. We are confident that SeaBaaS will deliver unmatched efficiency and transformative customer experiences,” he said.

Financial and Strategic Implications for Africa

Suleiman also pointed out the financial benefits of the migration. African banks collectively spend hundreds of millions of dollars annually on foreign core banking systems, which exacerbates trade imbalances. By adopting SeaBaaS, Sterling Bank sets a new benchmark for the Nigerian financial industry and opens the door for other African institutions to reduce technology costs, thereby promoting financial inclusion across the continent.

Sterling Bank’s migration to SeaBaaS aligns with its long history of market-leading innovations. The bank pioneered Nigeria’s first contactless prepaid transport card (FarePay) and developed the country’s first automated retail lending solution (Specta). It has also partnered with state governments to deploy innovative solutions, such as the first drone delivery system for pharmaceutical supplies in collaboration with Zipline.

With the successful deployment of SeaBaaS, Sterling Bank has reaffirmed its position as a leader in driving digital banking innovations across Africa.